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PPP Loan Forgiveness - Form 3508S Explained

Lindsay C
  • Updated

This article will outline the instructions for Form 3508S for PPP Loan Forgiveness.  Refer to the official form for additional guidance. 

Form 3508S vs. BlueVine Application

For your convenience,  BlueVine has created an online version of Form 3508S. It’s important to note that some of the fields from Form 3508S don’t appear in our online application because BlueVine already has this information on file. We’ll populate it into the application we send to the Small Business Administration. 

To ensure you’re able to successfully complete the BlueVine forgiveness application, we’ve split out the fields from the form in the table below, so you’ll know which fields are automatically filled and the ones you’ll be required to fill. 

The table is split into the following columns:

  • Section
    • This column indicates where the fields are located in Form 3508S (refer to the image below).
  • Form 3508S Field
    • This column indicates how the fields appear in Form 3508S.
  • BlueVine Application
    • This column indicates whether or not the information is pre-populated for you or if you’ll be required to fill it out.
  • Instructions
    • This column indicates the SBA’s instructions for the field.

Form 3508S Explained

Refer to the red letters in the form below to determine the instructions for the appropriate field.

F5D5B9A1-A409-487E-BE54-93873B0E25F5.jpeg

Section

Form 3508S Field

BlueVine Application

Instructions

A

Business Legal Name “Borrower”

BlueVine pre-populates this information for you. 

Enter the same information as on your PPP Application Form.

DBA or Tradename (if applicable)

BlueVine pre-populates this information for you. 

Business TIN (EIN, SSN)

BlueVine pre-populates this information for you. 

B

Business Address

BlueVine pre-populates this information for you. 

Enter the same information as on your PPP Application Form unless there has been a change in your address or contact information. 



*If the NAICS Code was not in your PPP Application Form, match the business activity code reported on your IRS income tax filings, if applicable.

NAICS Code*

BlueVine pre-populates this information for you in the field Industry. 

Business Phone

BlueVine pre-populates this information for you. 

Primary Contact

BlueVine pre-populates this information for you. 

E-mail Address

BlueVine pre-populates this information for you. 

C

First Draw PPP Loan or Second Draw PPP Loan

BlueVine pre-populates this information for you. 

If you received both a First and Second Draw PPP loan, select which one you’re applying for forgiveness for. 

If you only have one PPP loan, select First Draw PPP Loan.

D

SBA PPP Loan Number

BlueVine pre-populates this information for you. 

This is the number the SBA assigned to your PPP loan. 

E

Lender PPP Loan Number

BlueVine pre-populates this information for you. 

Enter the loan number assigned to your PPP loan by BlueVine. This is different from the number assigned by the SBA.

F

PPP Loan Amount

BlueVine pre-populates this information for you. 

Enter the total loan amount you received from BlueVine (i.e., the principal you received when you applied). 

G

PPP Loan Disbursement Date

BlueVine pre-populates this information for you. 

Enter the date that you received your PPP loan proceeds from BlueVine.

H

Employees at Time of Loan Application

BlueVine pre-populates this information for you. 

Enter the total number of employees you had at the time you submitted your PPP Application Form.

I

Employees at Time of Forgiveness Application

BlueVine pre-populates this information for you.

Enter the total number of employees at the time you’re applying for PPP loan forgiveness.

J

Covered Period Start and End Date

BlueVine pre-populates this information for you.

The Covered Period begins when the loan was initially disbursed and, by default, ends 24 weeks after disbursement. When you apply for forgiveness, you can select a shorter Covered Period (no less than 8 weeks).


You default to a 24-week covered period.  However, you can choose a shorter Covered Period when you apply for forgiveness. You will not be able to select a shorter Covered period if that shorter period causes your first PPP repayment date to be a date that has already passed.

K

If Borrower, Together with its Affiliates, if Applicable, Received First Draw PPP Loans of $2 Million or More or Second Draw PPP Loans of $2 Million or More: 

You will be asked this question before completing the BlueVine application.

Check this box if you, together with your affiliates1, received:

  • First Draw PPP Forgiveness App: First Draw PPP Loans with an original principal amount of $2 million or more. 
  • Second Draw PPP Forgiveness App: Second Draw PPP Loans with an original principal amount of $2 million or more

L

Amount of Loan Spent on Payroll Costs2

You’ll be required to calculate and input this information. Please use the instructions to help calculate.

You may be eligible for forgiveness for the payroll costs paid and payroll costs incurred during your Covered Period.3 To calculate your eligible payroll costs incurred or paid during the Covered Period, you’ll add your Cash Compensation, Employee Benefits, and Owner Compensation, as follows:

Cash Compensation: 

  • The sum of gross salary, gross wages, gross tips, gross commissions, paid leave (vacation, family, medical or sick leave, not including leave covered by the Families First Coronavirus Response Act), and allowances for dismissal or separation paid or incurred during the Covered Period.4 

Employee Benefits: 

The total amount paid by your entity for:

1. Employer contributions for employee group health, life, disability, vision, or dental insurance, including employer contributions to a self-insured, employer-sponsored group health plan, but excluding any pre-tax or after-tax contributions by employees.5

2. Employer contributions to employee retirement plans, excluding any pre-tax or after-tax contributions by employees.6

3. Employer state and local taxes paid by the entity and assessed on employee compensation (e.g., state unemployment insurance tax), excluding any taxes withheld from employee earnings. 

Owner Compensation: 

  • Any amounts paid to owners, including owner-employees—with an ownership stake of 5% or more—a self-employed individual, or general partners.7 

M

Requested Loan Forgiveness Amount

You’ll be required to calculate and input this information. Please use the instructions to help calculate.

Enter the total amount of your PPP loan that is eligible for loan forgiveness. This amount is the Amount of Loan Spent on Payroll Cost plus any amount spent on eligible nonpayroll costs minus any required reductions, up to the PPP loan’s principal amount.


1 To the extent required under subsection D.3. of SBA’s interim final rule posted on Jan 6, 2021 (86 FR 3692) and not waived under 15 U.S.C. 636(a)(36)(D)(iv)).

2 Payroll costs are considered paid on the day that paychecks are distributed or that the Borrower originates an ACH credit transaction. Payroll costs are considered incurred on the day that the employee’s pay is earned. Payroll costs incurred but not paid during the Borrower’s last pay period of the Covered Period are eligible for forgiveness if paid on or before the next regular payroll date. Otherwise, payroll costs must be paid during the Covered Period. Count payroll costs that were both paid and incurred only once. Include only payroll costs for employees whose principal place of residence is in the United States. For information on what qualifies as payroll costs, see SBA’s interim final rule posted on January 6, 2021 (86 FR 3692). 

3 If you incurred eligible expenses during your Covered Period but paid them after your Covered Period, they are only eligible if you paid those expenses on the first applicable payment date following the end of your covered period. For example, if your Covered Period ended June 15, and you incurred payroll for the first half of June but did not pay it by June 15, you can include those expenses only if you paid them on the first payroll date following the end of your Covered Period.

4 Do not include qualified wages taken into account in determining the Employer Retention Credit. For each individual employee, the total amount of cash compensation eligible for forgiveness may not exceed an annual salary of $100,000, as prorated for the Covered Period. For example, for an 8-week Covered Period, the maximum is $15,385; for a 24-week Covered Period, the maximum is $46,154. You can only include compensation of employees who were employed by the Borrower at any point during the Covered Period and whose principal place of residence is in the United States.

5 Do not add contributions for these benefits made on behalf of a self-employed individual, general partners, or owner-employees of an S-corporation, because such payments are already included in their compensation.

6 Do not add employer retirement contributions made on behalf of a self-employed individual or general partners, because such payments are already included in their compensation.

7 For each individual owner in total across all businesses, this amount is capped at (a) $20,833 (the 2.5-month equivalent of $100,000 per year), or (b) the 2.5-month equivalent of the individual’s applicable compensation in the year that was used to calculate the loan amount (2019 or 2020), whichever is lower. 

The information, opinions, and advice in this blog post are provided for educational purposes only, and do not necessarily state or reflect those of BlueVine and/or its partners, including The Bancorp Bank and Celtic Bank. Neither BlueVine nor its partners are responsible for the accuracy of any content provided by author(s) or contributor(s). For information about BlueVine products and services, please visit the BlueVine FAQ page. For information about the Paycheck Protection Program, please visit the SBA’s page.

 

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